Ameresco, Inc. (AMRC) Bundle
Understanding Ameresco, Inc. (AMRC) Revenue Streams
Revenue Analysis
The company reported total revenue of $782.3 million for the fiscal year 2023, representing a 14.2% year-over-year increase from the previous year.
| Revenue Segment | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Energy Efficiency Services | 532.4 | 68.1% |
| Renewable Energy | 187.6 | 24.0% |
| Energy Storage | 62.3 | 7.9% |
Revenue breakdown by geographic region:
- United States: $654.7 million (83.7% of total revenue)
- Canada: $98.5 million (12.6% of total revenue)
- International Markets: $29.1 million (3.7% of total revenue)
Key revenue growth metrics for the past three years:
| Fiscal Year | Total Revenue ($M) | Year-over-Year Growth |
|---|---|---|
| 2021 | 684.2 | 10.3% |
| 2022 | 685.1 | 0.1% |
| 2023 | 782.3 | 14.2% |
The company's revenue streams demonstrate consistent growth, with energy efficiency services maintaining the largest contribution to overall revenue.
A Deep Dive into Ameresco, Inc. (AMRC) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals key profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 24.3% | 26.7% |
| Operating Profit Margin | 8.2% | 9.5% |
| Net Profit Margin | 5.6% | 6.9% |
Operational efficiency metrics demonstrate consistent improvement across key financial indicators.
- Revenue for 2023: $2.14 billion
- Operating Income: $203.6 million
- Net Income: $147.8 million
| Efficiency Ratio | Company Performance | Industry Average |
|---|---|---|
| Return on Assets | 6.7% | 5.3% |
| Return on Equity | 12.4% | 10.9% |
Debt vs. Equity: How Ameresco, Inc. (AMRC) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Ameresco, Inc. demonstrates a strategic approach to its debt and equity financing.
Debt Overview
| Debt Category | Amount ($) |
|---|---|
| Total Long-Term Debt | $324.7 million |
| Total Short-Term Debt | $87.3 million |
| Total Debt | $412 million |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 0.68
- Industry Average Debt-to-Equity Ratio: 0.75
- Credit Rating: BBB- (Stable)
Financing Composition
| Funding Source | Percentage |
|---|---|
| Debt Financing | 42% |
| Equity Financing | 58% |
Recent Debt Activity
- Most Recent Debt Refinancing: $150 million revolving credit facility
- Interest Rate on Revolving Credit: LIBOR + 2.25%
- Debt Maturity Profile: Weighted average of 5.2 years
Assessing Ameresco, Inc. (AMRC) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and operational capabilities.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.85 | 1.72 |
| Quick Ratio | 1.43 | 1.35 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $214.6 million
- Year-over-Year Working Capital Growth: 8.3%
- Net Working Capital Efficiency: 0.76
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $187.3 million |
| Investing Cash Flow | -$92.5 million |
| Financing Cash Flow | -$55.8 million |
Liquidity Strengths
- Cash and Cash Equivalents: $145.2 million
- Short-Term Investments: $76.4 million
- Available Credit Lines: $250 million
Solvency Indicators
| Solvency Metric | 2023 Value |
|---|---|
| Debt-to-Equity Ratio | 0.45 |
| Interest Coverage Ratio | 4.2 |
Is Ameresco, Inc. (AMRC) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 24.6x | 26.3x |
| Price-to-Book (P/B) Ratio | 3.2x | 3.5x |
| Enterprise Value/EBITDA | 12.4x | 13.7x |
Key valuation insights include:
- Current stock price: $47.85
- 52-week price range: $33.74 - $55.65
- Dividend yield: 0.65%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 6 | 42% |
| Hold | 4 | 29% |
| Sell | 4 | 29% |
Comparative valuation metrics indicate the stock is trading slightly below industry averages, suggesting potential undervaluation.
Key Risks Facing Ameresco, Inc. (AMRC)
Risk Factors for the Company
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Operational Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Project Execution | Complex energy infrastructure projects | Potential cost overruns of 15-20% |
| Technology | Rapid technological changes | Potential obsolescence risk |
| Supply Chain | Component availability | Potential delays of 3-6 months |
Financial Risks
- Revenue volatility in renewable energy sector
- Potential fluctuations in government incentives
- Currency exchange rate risks
- Interest rate sensitivity
Market and Competitive Risks
Key competitive challenges include:
- Increasing market competition with 5-7 major players
- Potential market share erosion of 3-4% annually
- Regulatory environment changes
Regulatory Compliance Risks
| Regulatory Area | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Environmental Regulations | Stringent emissions standards | Potential compliance costs of $2-3 million annually |
| Tax Incentives | Potential changes in renewable energy credits | Revenue impact of 7-10% |
Strategic Risk Mitigation
Strategic approaches to risk management include:
- Diversification of project portfolio
- Continuous technology investment
- Robust contract negotiation strategies
- Maintaining $50-75 million in liquid assets
Future Growth Prospects for Ameresco, Inc. (AMRC)
Growth Opportunities
Ameresco, Inc. demonstrates significant growth potential in the renewable energy and energy efficiency sectors. The company's strategic positioning in multiple market segments provides robust expansion opportunities.
Market Expansion Strategy
| Market Segment | Projected Growth Rate | Potential Revenue Impact |
|---|---|---|
| Federal Government Solutions | 7.2% annual growth | $450-500 million |
| Commercial & Industrial Markets | 9.5% annual growth | $350-400 million |
| Renewable Energy Projects | 12.3% annual growth | $275-325 million |
Strategic Growth Drivers
- Expanding solar and battery storage project portfolio
- Increasing focus on distributed generation solutions
- Enhancing energy management technology capabilities
- Pursuing strategic acquisitions in emerging clean energy markets
Key Investment Areas
The company is prioritizing investments in:
- Advanced energy storage technologies
- Microgrid development
- Electric vehicle charging infrastructure
- Sustainable infrastructure modernization
Financial Growth Projections
| Fiscal Year | Revenue Projection | EBITDA Estimate |
|---|---|---|
| 2024 | $1.2 billion | $180-200 million |
| 2025 | $1.4 billion | $220-240 million |
Technology Investment Breakdown
- R&D Investment: $45-50 million annually
- Digital Energy Management Systems: $25 million allocated
- Artificial Intelligence Integration: $15 million planned investment
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